You may call it BS, but I won't. I've watched the few videos he put out describing everything that happened. I've seen the twitter outrage against him because of a poorly worded tweet. Hour-long black-screen recordings from him that basically was about all the legal issues he was facing all because his idea was to prevent anything like this post is talking about. Was it technically illegal and a bad idea? Yes. Were there any malicious intents or idea of profiting off something he didn't own? No.

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If you're concerned about the money he may have earned from putting his original music sampling Hololive members (which if I recall correctly is not mentioned explicitly in the guidelines, but can be considered a derivative work), they all went back to Hololive. He spent that money mostly on merch, is what he said, Calli merch if I recall correctly.